Simple answers to Complex Questions and Complex Answers to Simple Questions.
In real life, I'm a Greater-Toronto (Canada) Realtor with RE/MAX Hallmark Realty Ltd, Brokerage. I first joined RE/MAX in 1983 and was first Registered to Trade in Real Estate in Ontario in 1974.
Formerly known as "Two-Finger Ramblings of a Forensic Acuitant turned Community Synthesizer"

Monday, March 01, 2010

" ... temptation for governments to ask for higher inflation in order to monetize the dramatic buildup of public debt ..."

Monetize the Debt ... or Debt-ify the Money ... What's worse, Daddy?" Ah, well son, that's a hard one to answer in brief."

"Let me just say that debt-ifying the money undermined the wealth of the regular citizen, but eased the stealthy implementation the social-democrats ... without anyone watching or knowing much of how it worked.

I can only assume that monetizing will continue this program's success"

Excerpt"“I can only reject the idea of raising inflation rates permanently,” (European Central Bank Executive Board member, Juergen) Stark said in a speech in Seoul today. “There is no evidence whatsoever to support that deviating from price stability and aiming at an inflation rate of 4 percent would enhance economic prosperity or growth.”

Stark is the latest ECB official responding to a suggestion this month from IMF economists led by Olivier Blanchard that central banks double their inflation targets to about 4 percent so that monetary policy has more scope to react to shocks such as the recent financial crisis.

Bundesbank President Axel Weber said yesterday that the IMF is “playing with fire.”A 4 percent inflation target would shave “no less than” 0.5 percentage point off trend growth in the euro region, Stark said. The ECB aims to keep inflation just below 2 percent in the medium term.

“I do see the temptation for governments to ask for higher inflation in order to monetize the dramatic buildup of public debt in nearly all advanced economies,” Stark said. “Calling on central banks to raise inflation rates permanently is most unhelpful” and reflects that “macroeconomic stability is threatened by the unsustainable position of public finances in nearly all advanced economies.” "

On days when the Japanese Yen is in retreat, as is now the case, are days typically when global carry trades and risk appetite come back to the forefront. The Yen is weakening on calls from Financial Services Minister Shizuka Kamei for the BoJ to quickly begin a program of monetizing the government’s debt.